6. 7. 8. The Government-Wide Financial Statements of a state government would be accounted for under which basis of accounting? O Modified accrual accounting under the GASB guidelines Accrual accounting under the GASB guidelines O Cash basis under the GASB guidelines A key reporting requirement of government funds is the reporting of Major Funds, which statement below best describes the requirements? o Only the General Fund is reported as a major fund. o The General Fund plus any fund that requires reporting under percentage test methods required under the GASB. o Only Proprietary and Fiduciary Funds are reported as major funds. Which statement best describes a capital project fund? O A capital project fund is primarily used to match expenditures with the debt service fund. O A capital project fund is normally used to account for all construction projects in a government unit and remains open from year-to-year. O A capital project fund is often used to account for large construction projects in a separate fund and the fund is closed at the end of the construction project. Which statement best describes a permanent fund? There are no permanent funds. O A permanent fund is only used to track temporarily restricted assets. O A permanent fund is designed to account for earnings and/or principal that have designated only for a specific purpose and until the assets are used. 9